Strong California walnut shipments in light of

SPRING 2008
IN THE NEWS: Plant upgrades…2 New products…3
Crop update…8
PFA…10
Blight…14
Strong California walnut shipments
in light of reduced supply
B
ased on the 2007 crop
estimate of 320,000
tons by the California
Agricultural Statistic Service
(CASS) and the carry-in
inventory of 40,596 tons, the
overall supply of 360,596 tons
was approximately 50,000
result, Diamond advanced
prices in the fall well beyond
the levels that were prevalent in the market before
Diamond’s entrance. These
price increases, plus cost reductions in receiving, storage
and processing, have resulted
Diamond’s success in developing
new value-added markets and
products has been instrumental
in maintaining crop movement
and 131.3 million pounds of
shelled walnuts were held in
inventory by handlers versus
34.3 million pounds of inshell
and 154.3 million pounds of
shelled product in inventory
in January 2007, which would
Industry Shipment Reports
Through January 31, 2008
INSHELL (1,000 POUNDS)
2006/07 Marketing Year
Jan. 2007
tons less than the prior year
and the lowest total supply
since the 2001/02 marketing
year.
The reduced total available supply was also met by
a very favorable exchange
rate for most international
customers. As of February
2008, the U.S. dollar value
compared to that of the euro
reached the lowest level since
the adoption of the euro, and
its value against the Japanese
yen dropped to the lowest
level since May 2005.
Despite a record pecan
crop, Diamond determined
that the lower total supply
and favorable exchange rates
provided the potential for
higher walnut prices. As a
in total grower returns for
the 2007 crop projected to be
40%–50% more than prior
year returns.
As indicated in the
Industry Shipment Reports
(right), in spite of the lower
available supply and higher
price levels, shipments
through January were virtually the same as those for
the 2006/07 marketing year.
Diamond’s success in developing new value-added markets and products has been
instrumental in maintaining
crop movement during this
higher price market.
Industry-reported
inventory as of January
2008 indicated 33.6 million
pounds of inshell walnuts
place the shelled inventory at
the lowest level since the 2000
crop year. It further indicates
that a substantial portion
of the 2007/08 supply was
shipped in the first half of the
marketing year.
2007/08 Marketing Year
Aug. 1, 2006–
Jan. 31, 2007
Jan. 2008
Aug. 1, 2007–
Jan. 31, 2008
Domestic
Export
953
3,462
20,471
91,243
1,111
2,715
19,955
91,357
Total
4,414
111,714
3,826
111,312
SHELLED (1,000 POUNDS)
2006/07 Marketing Year
Jan. 2007
Aug. 1, 2006–
Jan. 31, 2007
2007/08 Marketing Year
Jan. 2008
Aug. 1, 2007–
Jan. 31, 2008
Domestic
Export
10,509
10,471
92,968
50,471
10,664
9,454
91,872
52,087
Total
20,980
143,439
20,118
143,960
INSHELL EQUIVALENT TONNAGE
2006/07 Marketing Year
Jan. 2007
Aug. 1, 2006–
Jan. 31, 2007
2007/08 Marketing Year
Jan. 2008
Aug. 1, 2007–
Jan. 31, 2008
Domestic
Export
12,782
13,992
119,097
104,721
13,013
12,402
117,305
106,528
Total
26,773
223,818
25,416
223,834
Source: Walnut Marketing Board
PL ANT
UPG R AD ES
AC, lighting improvements for Stockton Plant
D
iamond is working toward making a positive environmental
impact by reducing its energy
consumption at the Stockton processing
and packaging facility. A new, state-ofthe-art HVAC (heating, ventilating and
air conditioning) system is currently
being installed that will provide a total
annual savings in electricity and operating costs of approximately $587,000.
The old system, which was installed
in 1956, has been responsible for cooling the 120,000-square-foot cold box,
which can accommodate approximately
25 million pounds of product inventory. This original system was based on
an ammonia absorption principle and
utilized anhydrous ammonia as the cooling gas with a boiler providing the steam
to drive the refrigeration process. In
1980, Diamond installed a shell-burning
Installation of the new modular
Freon system will provide Diamond with
reliable temperature control as well as
the annual savings of more than a halfmillion dollars in electricity and operating costs mentioned previously.
In conjunction with the installation
of the new HVAC system, Diamond is
implementing a new lighting retrofit
for the Stockton plant. This project is
expected to result in an annual savings
biomass cogeneration plant with lowof $134,385 in energy and is expected
pressure steam from the plant replacing
to pay for itself in approximately one
the boiler-generated steam. The system
year. The newer fluorescent lights and
was operated in this manner until it was fixtures require roughly half the energy
closed in 2005 due to cost and regulaof the current 25-year-old high energytory concerns. At that time, the ammonia consuming metal halide lamps. These
system was replaced by two used Freon
fixtures are installed in the exact locachillers that were combined with parts of tion as the current lamps, create better
the original ammonia system to cool the illumination in the plant and are comcold box.
patible with the use of motion sensors.
New systems
will make a positive
environmental impact
as well as
result in significant
cost savings
New Stockton packaging line installed
A
new rigid polyethylene terephthalate
(PET) canister
packaging line has been
successfully installed in the
Stockton production facility.
Early February marked its
inaugural run and
the production of
the first in-house
Emerald Smoked
Almond PET
jug. Since its initiation, the line
has run Deluxe
Mixed Nuts as
well as Sea Salt &
Pepper Cashews
and Cocoa Roast
Almonds, the
2
GROWER NEWS
(Above) Rigid PET (polyethylene terephthalate) jugs like
the one shown at left are run on a new packaging line at
the Stockton plant that was initiated in early February. The
jugs are larger than the traditional canisters and hold up to
38 ounces of product.
company’s newest offerings. The PET packaging
line is strategically located
near snack processing,
allowing direct feed
from roasting to packaging. This greatly reduces
product handling and
increases the freshness in
the finished product due
to immediate packaging.
The high-volume line was
designed with club store
customers in mind. Its
flexibility, however, will
allow the development of
multiple sales and marketing strategies to attract
new business opportunities in the future.
MA R K ET I NG
R EPO R T
New products, programs, awards
Diamond holiday 2007
programs successful
This past holiday season Diamond
teamed up with several prominent national brands for promotions in the nation’s grocery stores. The program was a
great success, with Diamond once again
leading the category.
“Our goal is to partner with well-recognized brands that are natural complements to our Diamond culinary nuts to
create compelling meal solutions that
are relevant to both consumers and our
retail partners,” said Senior Marketing
Manager Jeff Ngo.
During November and December,
the top two baking months of the year,
Diamond of California® culinary nuts
partnered with HERSHEY’S® Semi-Sweet
Chocolate Chips and EAGLE BRAND®
Sweetened Condensed Milk for a baking
aisle promotion featuring holiday recipe
suggestions and coupons. On-pack foldout booklets on participating Diamond
and EAGLE BRAND products featured
quick, easy and delicious recipes as well
as instant redeemable coupons for the
three brands. Coupons for Diamond and
EAGLE BRAND products and a fudge
recipe were also printed directly on
the packages of HERSHEY’S SemiSweet Chocolate Chips. Incremental
displays included special header
cards with an image of Diamond
Shelled Walnuts, HERSHEY’S SemiSweet Chocolate Chips and EAGLE
BRAND Sweetened Condensed
Milk and the message: “Your Holiday Season Just Got a Whole Lot
Sweeter!”
“Over 5 million packages
featuring these special savings
were distributed during the
two-month baking aisle promotion,” said Ngo. “Promotions like this
have been successful in the past
in boosting our culinary nut sales
during key periods.”
Diamond is the leading brand
of culinary nuts in the U.S., with
a market share more than four
times that of the nearest branded
competitor. Based on IRI Food
InfoScan data, Diamond’s culinary
market share (based on sales) for
the 52-week period ended September 9, 2007, was 34.8%.
Diamond advertises in
publications, online
Over the key holiday baking period,
Diamond’s culinary products were
advertised in a broad array of print and
digital media, ranging from Bon Appétit, Food Everyday, Better Homes and
Gardens, Cooking Light and Food &
Wine magazines, to websites epicurious.
com, foodnetwork.com, allrecipes.com
and myrecipes.com, to search engines
Google and Yahoo! Search.
Diamond website redesigned
Visitors to diamondfoods.com no doubt
noticed it has an attractive new look. The
redesigned site went live last fall and is
designed to give consumers, the trade,
growers and other investors alike quick
and easy access to a wealth of information about the company, plus a link to
emeraldnuts.com.
GROWER NEWS
3
Emerald
Cocoa Roast Almonds
Emerald showed a sweeter side with
its introduction of new Cocoa Roast
Dark Chocolate Almonds. This product
combines special dry roasted almonds
with a rich, dark chocolate flavoring,
resulting in a crisp, flavorful snack. It can
be shipped in a shelf-stable environment
and does not require refrigerated shipping or warehouse storage like traditional chocolate covered items. The product
is offered in Emerald’s convenient and
ergonomically designed
on-the-go canister. Emerald
Cocoa Roast Dark Chocolate Almonds have the great
taste of chocolate without
the added calories and fat
found in chocolate-dipped
nuts. One serving (measured using the canister’s
lid) is only 150 calories—
the same as a handful of
regular almonds. Plus, it’s a low-sodium
snack that is also a great source of Vitamin E and protein.
Emerald Cocoa Roast Dark Chocolate Almonds addresses consumers’
demand for sweet, healthy snacks by
combining the health benefits of dry
roasted almonds with a delectable chocolate coating that delivers all the flavor
without the guilt.
Emerald Sea Salt & Pepper
Cashews
Emerald also recently introduced Sea
Salt & Pepper Cashews. The product
4
GROWER NEWS
is available across a variety of packaging formats, from the ergonomic green
canister to a clear PET (polyethylene
terephthalate) jug which is currently
available in certain club stores.
The product is a delicious snack
that leverages the growing demand for
new and unique flavors across the snack
universe, plus:
• It is a high source of protein
• It is the only nationally available sea
salt and pepper snack nut on the market
berries and blueberries
• Tropical Blend contains cashews and
glazed walnuts, along with dried mango
and pineapple
Diamond recently introduced a new
windowed package so now consumers
can easily see at the shelf the quality put
into these products. The clear bag allows
the consumer to see the granola, fruit
and nut medley, bringing greater product appeal.
Advertising Age taps Emerald
for ‘best of year’ roundup
Emerald Trail Mix—now in
a new window bag
Advertising Age’s Bob Garfield selected
the Emerald “Natural Energy” commercial as one of the 10 best spots of 2007,
dubbing it “Hilarious.” The commercial
for Diamond Foods’ Emerald product
line premiered during the 2007 Super
Bowl and featured the late Robert Goulet
pulling pranks on people with low
energy levels during the midday slump,
until he is scared away by an alert office
worker who is bestowed with natural
energy from eating Emerald nuts.
Emerald Trail Mix is growing 10 times
faster than the category (Food 52 wks
ending Jan 27, 2008). Its growth is driven
by its premium mix of granola clusters,
dried fruit and patented glazed walnuts.
The product is available in three delicious flavors:
• Breakfast Blend contains glazed
walnuts and almonds, along with dried
cranberries and apple chips
• Berry Blend contains peanuts and
glazed walnuts, along with dried cran “We are excited to have our commercial recognized in Advertising Age as one
of the year’s top spots since it effectively
blended humor with our message about
the healthy energy benefits of nuts,” said
Andrew Burke, senior vice president of
marketing. “Our upcoming ads for Emerald continue to champion the ‘Natural
Energy’ message, with even more interesting things happening to those low on
energy.”
Emerald is nuts for running!
A
s part of
Diamond’s commitment to promoting healthy and active lifestyles, Emerald is
currently sponsoring numerous endurance races
across the country as part
of the Emerald Final Five
campaign. The Emerald
Final Five promotes the
natural energy inherent
in Emerald Snacks that’s
ideal to complete the last
five miles of a race or to
get people through the day while feeling their best. The Emerald Final Five recently launched during the Zappos.com
Las Vegas Marathon, with its next appearances set for the Los Angeles Marathon,
the Salt Lake City Marathon and the 2008
Banco Popular Chicago Half-Marathon.
The Emerald Final Five is a multi-faceted marketing campaign that helps promote the importance of natural energy.
Emerald’s television commercials tout that
the benefits of Emerald Nuts can get anyone through the low-energy part of the
day. Similarly, the Final Five program describes how a runner who is low on en-
ergy can use Emerald
nuts in his or her training to get through long
runs or a marathon/
half-marathon. At each
of the sponsored races,
runners will be greeted
with a huge inflatable
and banners marking
the start of the Emerald
Final Five—reminding
them that Emerald is
their secret to better training to get
through the race.
Diamond is also
featured on each
race’s website, with
a special section
about the Emerald
Final Five and the natural
energy of Emerald snacks.
In addition to building the Emerald
Brand recognition, sponsoring these
running events provides an opportunity
to present each participant with a sample
of Emerald products, a health brochure
on the nutritional benefits of our products as well as a coupon for a future purchase. Engaging recreational runners as
advocates of our products, as a “key part
of a balanced and nutritional diet,” is
critical to build the depth and breath of
our brand positioning in the future.
Diamond Foods is the title sponsor of two prestigious running events:
the Emerald Nuts Midnight Run in
New York City and the San Franciscobased Emerald Across the Bay 12K. The
Emerald Nuts Midnight Run took place
on New Year’s Eve in Central Park and
with 5,000 runners and 15,000 spectators,
featured the largest New York City gathering for a New Year’s celebration outside
of Times Square. The Emerald Across
the Bay 12K features spectacular views
of the San Francisco Bay and is considered the “Best Bridge Run in America” by
Runner’s World.
Additionally, Emerald is running
an advertorial in four issues of Runner’s
World that stresses the health benefits of
Diamond products with a focus on runners. This is enhanced by a special microsite on runnersworld.com called
“Running Nuts,” where visitors can post
their running stories, blog about their favorite snacks, and share hints and tips on
nuts’ nutrition, among other features.
The Emerald Final Five marketing
campaign promotes the
importance of natural energy
GROWER NEWS
5
WO RLD
WAL NU T
OUT LO O K
Spotlight on
China
Production
China’s walnut production in
2007 was forecast at 506,000
tons, an increase of 8% from
2006. The increase is attributed mostly to recovering
production in Shanxi, the
fourth-largest walnut producing province, where 90% of
the 2006 walnut crop was
lost to a spring snowstorm.
Crops in other major producing provinces, however, were
forecast to decrease slightly
in 2007 because of heavy rain
and high temperatures during
crop development in the Yunnan province and frost damage during the bloom period
in Xinjiang and Shaanxi.
Total walnut acreage was
forecast at 3,290,000 acres
in 2007, up 5% from 2006
in the wake of good returns
and government support
programs. Acreage expansion is occurring in almost all
walnut producing provinces,
but especially in Yunnan,
where farmers typically plant
their trees on slopes and many
rural households own just a
small parcel of land. In Shanxi
province, where land is quite
limited, some farmers reduced
the area of apple or pear plantings in favor of walnuts.
China is attempting to
improve both quality and
yields. General nut quality is
improving with better orchard
management and the in6
GROWER NEWS
creased use of higher-quality
varieties. More focus is being
placed on pruning, irrigation
and fertilization—all despite
increasing agricultural input
costs. Water shortages continue to be a concern for growers, along with rising wages.
China’s producers are also
moving into more modern, consolidated orchards,
resulting in increased yields.
Traditional orchards yield less
than 400 pounds per acre,
while a consolidated orchard
will yield almost 3000 pounds
per acre. Estimates place
these consolidated orchards at
10%–15% of the total walnut
acreage.
Consumption strong
Walnut consumption in China
remains strong and is forecast
to increase by about 8%, to
480,000 tons in 2007/08. The
Chinese generally consider
nuts a snack food and consumption depends heavily on
disposable income, making
nuts and nut products pricesensitive and vulnerable to
substitution (higher-income
households tend to purchase
more nuts). Nut consumption
is projected to maintain an
annual growth rate of 5%, but
many believe consumption of
walnuts is increasing much
faster than that of other types
of nuts.
Unlike other nuts, walnuts
are considered a health food
with many benefits—most
notably improved brain function. Nut products are consumed mainly in urban areas,
especially in large cities such as
Beijing and Shanghai. The results of a survey conducted in
Nanjing, a major industrial city
near Shanghai, indicate that
China walnut production trend
(Tons in 000’s)
China
more than 20% of households
buy 2–13 pounds of walnuts
a month and 8% of families consume more than 13
pounds of walnuts monthly.
Demand for nuts—walnuts
in particular—is expected
to continue to increase, with
income growth, urbanization
and more health-conscious
consumers.
Although some processed
products such as walnut milk,
walnut oil and walnut powder
are sold on the market, the
majority of walnuts are sold
in bulk (in-shell and unsalted)
or packaged forms (shelled,
sugar/honey coated or salted).
Bakery and confectionery
industries also consume significant amounts of nuts. New
products such as salted inshell
walnuts may generate more
buying interest from Chinese
consumers who are open to
trying new products.
Walnut imports
Imports of walnuts were
forecast to increase by 13%
from 2006, to 9500 tons.
This rise is based on strong
domestic demand driven by
rising incomes and growing
health consciousness. The appreciation of the yuan is also
fueling buying interest. The
U.S. remains the single largest
exporter of walnuts to China,
with 2006 exports valued at
$9.9 million.
Exports increasing
Walnut exports were forecast
to increase 6%, to 35,750 tons,
in the 2007/08 marketing
year as result of crop recovery
in the major producing area
of Shanxi. Some companies
still prefer to export walnuts
than sell domestically because
payments from overseas buyers clear their accounts more
quickly than those from domestic retailers. Large supermarkets, or “hypermarkets,”
require a high “entrance fee”
and often delay payments to
the food suppliers.
Government assistance
continues
Since 1999, a national forestation program that subsidizes
farmers who convert grain
crops on slope land into forest
or grass (to prevent soil erosion) has facilitated walnut
plantings. Industry sources,
however, report the area of
sloping land that benefits from
this program is limited. Sub-
stantial support for walnut production occurs at the provincial
level or below, depending on
the local government’s resources and the importance attached
to production. Often provincial support is implemented
through technical services, free
or subsidized seedlings, and in
some cases, cash subsidies.
Provincial governments
also fund public research institutes and agricultural universities to develop standardized
farming practices and to build
demonstration farms to exhibit
these standards. Research projects focus on developing new
varieties or improving existing
varieties.
China’s tree nut industry
does not benefit from any
direct support from the central
government, but the government does provide a 5% tax
rebate to walnut exporters
after their products leave the
country. According to industry
sources, exporters also have
easy access to bank loans to
purchase raw materials.
Import duties high
Import tariffs remain high
for walnuts, with tariffs on
inshell and shelled walnuts
currently at 25% and 20%,
respectively. In addition to
the customs duty, importers
must pay a 13% value-added
tax on top of the value of the
shipment, making imported
walnuts much more expensive
than domestically produced
nuts. There is no indication
the government will reduce
these tariffs in the near future.
Industry contacts report that
some importers are now buying nuts from the Association
of Southeast Asian Nations
(ASEAN), countries bordering
China, to take advantage of
the zero tariff arrangement on
farm products between China
and ASEAN nations.
tion of Quality Supervision,
Inspection and Quarantine
(AQSIQ) recently started
requiring exporters to register the walnuts orchards
from which they source raw
materials. Industry sources
indicate this requirement is
difficult to implement because
most exporters do not own
orchards; instead they source
from middlemen who collect walnuts from numerous
individual farmers. The recent
spike of food safety incidents
associated with Chinese food
exports has resulted in increased inspection and testing
by China’s local Inspection and
Quarantine Bureaus (CIQs).
Nut shipments for export are
now tested for heavy metal residues. Additionally, AQSIQ now
requires that all export food
products receive a CIQ inspection label prior to export.
Increased inspections
at China’s ports
China’s General Administra-
Source: U.S. Department of Agriculture Foreign Agricultural
Service (USDA/FAS) reports
A glance at some other key producing nations
• Chile: Many producers have adopted improved farming
practices, and along with additional acreage coming into
production, total output has increased in the past 10 years from
approximately 10,000 tons to more than 20,000 tons.
Labor costs are an important factor affecting walnut
production and processing. Chile has a competitive quality
advantage in shelled walnuts, since almost all shelled walnuts
are hand‑cracked. Although the premium Chile receives from this
advantage continues to encourage hand‑shelling; increased labor
costs may mean that Chile could lose this advantage in coming years.
The EU is Chile’s main export market for walnuts, accounting
for more than 60% of total exports. There are no specific
government policies regulating or benefiting tree nut production
in Chile. The general import duty on walnuts is 6% except for
countries with which Chile has signed trade agreements. The
U.S.–Chile Free Trade Agreement lowered duties on U.S. inshell
and shelled walnuts to zero as of January 2004. Chilean exports to
the U.S. face a zero duty for inshell walnuts and shelled walnuts as
of January 2007.
continued on page 11
Walnut production trend
(Tons in 000’s)
GROWER NEWS
7
2007 crop quality update
T
he 2007 crop of 323,082 tons represented a 6.2% decrease in production from the 344,334 tons of the
previous year. Though initially anticipated to be the “on-year cycle,” the final
tonnage marked the second consecutive
year of decreasing total production since
the industry’s record high production of
354,218 tons in 2005. This is a production trend not exhibited in more than two
decades.
As harvest progressed, field reports
from each region began to confirm the
estimate of a smaller crop mainly due to
a decrease in production from four out
of six key varieties. Additionally, production on many varieties in the central part
of the state noticeably lagged behind the
other growing areas. This downward shift
in production was thought to be a more
amplified result from the severe heat in
July of 2006 and its impact on the bud
development. During that period, the
daytime high temperatures were several
degrees warmer in the central part of the
state compared to many areas in the Sacramento and Southern San Joaquin valleys.
As the 2007 harvest concluded,
statewide average production on a tons/
acre basis decreased for Hartley by 11%,
Payne by 14%, Vina by 23%, Tulare by 31%
and Chandler by 19%. These five varieties
represented approximately 69% of the total
tons produced in 2007.
The varieties that showed the largest
production increases on a tons-per-acre
basis from 2006 were Serr by 14%, Ashley
by 7% and Howard by 11%. The overall
tonnage of the Howard variety increased
31% from 2006 due to more high-density
plantings beginning to bear heavily. And
while production of Tulare and Chandler
varieties significantly decreased on a tonsper-acre basis, the total tonnage produced
8
GROWER NEWS
Variety
Avg RLI
% Edible
% Offgrade
TOTAL DIAMOND
Ashley
51.0
46.6%
3.5%
Chandler
53.9
48.3%
1.2%
Hartley
53.4
43.2%
1.8%
Howard
53.0
49.8%
2.1%
Payne
51.6
46.8%
3.9%
Serr
52.1
54.8%
3.4%
Tulare
52.1
51.0%
2.9%
Vina
50.6
45.2%
3.6%
Other
51.8
45.7%
3.4%
Average
52.6
47.9%
2.3%
SOUTH SAN JOAQUIN — LOCAL 19
Ashley
49.8
47.7%
3.0%
Chandler
53.8
47.3%
1.1%
Hartley
52.8
41.9%
2.1%
Payne
49.8
46.8%
4.5%
Serr
51.1
54.5%
4.1%
Tulare
51.4
50.2%
3.1%
Vina
49.3
44.6%
4.2%
Other
51.0
44.7%
4.5%
Average
51.6
49.0%
3.1%
LINDEN (II-A) — LOCAL 07
Ashley
51.8
47.8%
3.5%
Chandler
53.9
50.1%
1.2%
Hartley
53.7
45.2%
1.4%
Howard
52.9
51.7%
2.0%
Payne
52.2
47.9%
3.4%
Serr
53.7
57.1%
2.0%
Tulare
53.6
52.8%
2.3%
Vina
51.5
46.6%
2.9%
Other
52.7
48.4%
2.0%
Average
53.2
49.5%
1.9%
SACRAMENTO VALLEY — LOCAL 24 & 27
Ashley
51.1
46.0%
4.0%
Chandler
53.9
47.8%
1.3%
Hartley
53.4
42.7%
2.1%
Howard
53.0
49.4%
2.2%
Payne
50.8
44.7%
4.5%
Serr
52.6
53.3%
3.3%
Tulare
52.6
50.7%
3.5%
Vina
50.3
43.9%
4.3%
Other
51.8
44.8%
3.7%
Average
53.1
46.5%
2.2%
% Jumbo
61.3%
75.5%
68.9%
81.4%
61.4%
59.9%
83.9%
61.6%
53.8%
69.2%
55.9%
77.5%
66.8%
56.1%
60.2%
82.3%
58.1%
60.7%
68.3%
65.9%
73.9%
73.1%
79.0%
64.6%
57.9%
85.9%
63.3%
50.1%
68.2%
61.0%
75.0%
68.2%
81.6%
41.0%
57.7%
84.3%
59.4%
50.8%
69.5%
While tonnage was down, 2007 produced high quality
and the strongest edible yield in Diamond’s history.
Variety
Avg RLI
% Edible
% Offgrade
% Jumbo
MODESTO — LOCAL 08 & 26
Ashley
51.0
44.5%
3.6%
64.6%
Chandler
53.9
49.0%
0.8%
77.5%
Hartley
53.6
44.0%
1.4%
74.8%
Howard
53.0
50.2%
1.9%
82.7%
Payne
52.3
46.0%
4.1%
61.4%
Serr
53.4
54.6%
3.4%
67.8%
Tulare
53.3
51.2%
2.7%
88.3%
Vina
51.2
45.3%
3.6%
68.1%
Other
52.2
47.3%
4.0%
62.7%
Average
53.1
48.4%
2.3%
73.4%
CONTRA COSTA — LOCAL 02
Chandler
53.9
49.6%
1.0%
69.9%
Hartley
54.0
44.7%
1.4%
65.2%
Howard
53.6
49.9%
1.4%
83.9%
Payne
49.5
46.8%
3.1%
66.3%
Serr
52.7
47.2%
7.8%
58.7%
Vina
49.4
44.2%
3.2%
55.2%
Other
51.2
49.2%
2.5%
72.1%
Average
52.2
48.6%
2.0%
71.7%
NORTH COAST — LOCAL 11
Chandler
54.0
46.9%
0.4%
75.2%
Hartley
53.5
40.7%
0.8%
70.0%
Howard
54.0
43.5%
0.1%
68.7%
Other
52.4
41.6%
0.9%
37.4%
Average
53.1
41.3%
0.8%
56.8%
SOUTH COAST — LOCAL 15
Payne
53.7
44.6%
2.0%
39.6%
Chandler
54.0
49.2%
0.9%
76.9%
Average
53.9
47.0%
1.4%
58.6%
CENTRAL COAST — LOCAL 09 & 16
Ashley
53.5
47.7%
2.1%
71.5%
Chandler
54.0
48.4%
0.5%
85.0%
Hartley
53.6
41.0%
0.7%
29.7%
Other
53.4
42.2%
0.9%
15.5%
Average
53.6
44.6%
1.1%
50.3%
by each variety was only down by 11% and
14% respectively, suggesting that there
continues to be more acres of these varieties coming rapidly into production.
The most outstanding feature of the
2007 crop was the superior quality that
was driven by the strength of the edible
yields and RLI values. As a welcomed
rebound from 2006, the overall average
edible yield of 47.9% was the strongest in
Diamond’s history. When combined with
an overall average RLI of 52.6, these two
factors made this past crop one of the best
quality crops on record.
Edible yields in most varieties were
very strong. This is particularly true with
the Serr variety, which produced its highest edible yield percentage in the last eight
years. Hartley, Howard and Chandler varieties also showed significant edible yield
increases from 2006. RLI values improved
on the early harvesting varieties as a result
of the mild summer growing conditions,
while mid- and late-season varieties maintained pace with the strong kernel color
values of the prior year. The great quality
was demonstrated by 96.6% of all deliveries being Class 1 Insect and 81.44% of the
crop qualified for a shelling quality bonus.
Insect damage and other off-grade such as
mold and shrivel were slightly more evident in the early- and mid-season varieties
when compared to 2006, but quality still
remained very good. The Jumbo inshell
size percentage improved for Ashley,
Payne and Vina varieties, while the Hartley variety saw a decrease in Jumbo sizes
compared to the prior year.
The outstanding quality attributes
of the 2007 California walnut crop have
again provided the industry with a great
opportunity to continue to advance market development and consumption.
GROWER NEWS
9
Managing PFA in walnut
By Robert H. Beede, UCCE Farm Advisor, Kings/Tulare Counties
Joe Grant, UCCE Farm Advisor, San Joaquin County
Kathy Kelley Anderson, UCCE Farm Advisor, Stanislaus County
Janine Hasey, UCCE Farm Advisor, Sutter/Yuba Counties
P
istillate flower abortion (PFA) is the loss of female walnut
flowers 2–3 weeks after bloom. Although the Serr walnut
variety is most affected by PFA, this phenomenon has
been recorded in other varieties to lesser degrees. Originally
called Serr drop in the 1970s, flower loss sometimes exceeded
90% in certain orchards and years. Determining the cause of
the disorder proved extremely difficult. By the late 1980s UC
research lead by Drs. Peter Catlin (emeritus), Gale McGranahan, and Vito Polito had eliminated mites, walnut blight,
numerous nutritional deficiencies (including nitrogen, calcium,
and boron), tree age, shading, pruning practices, water stress,
tree competition, incompatible pollen and lack of pollination.
Cherry leafroll virus, the cause of blackline, was also studied
and eliminated. The severity of PFA in northern California
Serr orchards forced many growers to either remove them in
their prime or suffer costly and complicated scaffold grafting to
another variety.
In the 1990s, researchers in Hungary and California tested
the possibility that excessive pollen might be the cause. UC
Davis pomology faculty and farm advisors confirmed this from
detailed tagging of flowers and collection of yields from individual trees varying in distance from a pollen source. Reduction of the pollen load in test orchards by catkin removal also
decreased PFA and increased yield. Tests on cultivars other than
Serr (Chandler, Vina and Chico) showed the presence of PFA,
but not at levels which typically resulted in economic loss.
Continued research by Dr. Polito showed that live or dead
pollen grains in excess of 85 per flower produced a large peak of
the plant hormone, ethylene, 24 hours after inundation and that
this was the most likely cause for abortion. Ethylene is associated with plant tissue aging; hence the affected female flowers
grow old and fall off before they can be successfully pollinated.
Polito also tested two non-commercial compounds, which
either promoted or inhibited ethylene production and observed
corresponding increases and reductions in PFA.
The first field test with the commercial product, ReTain®, an
AVG-based ethylene inhibitor manufactured by Valent BioSciences, was performed by Beede in 2003. A four-fold increase in
fruit set was observed over untreated flowers in a Serr orchard
due south of a Chandler grove. In 2004, commercial speed
sprayer trials performed in Kings and San Joaquin counties
10
GROWER NEWS
at 25 and 50 grams ai/ac (active ingredient/acre) resulted in
significant increases in percent set and yield improvements
in excess of 1000 dry inshell pounds per acre compared to
untreated trees. Treatment was at an estimated 40% pistillate
bloom. In 2005, trials in Kings and Tulare counties examined
the effects of application timings from prebloom to 70% bloom,
as well as concentration (25 and 50 grams ai/ac) and water
volume (100 and 200 gal/ac). The 20–30% and 60–70% bloom
timings resulted in the greatest yield improvement (163 dry
inshell lbs/tree) compared to untreated trees (76 lbs/tree). Half
the recommended concentration (25 grams ai/ac) in 100 or 200
gal/ac provided a 30 lb/tree increase over the untreated trees.
Application of one bag of ReTain (50 grams ai/ac) in 100 gal/
ac resulted in a 53 lb/tree increase. A similar trial comparing 25
and 50 grams ai/ac was performed by Joe Grant in San Joaquin
County. The half-rate increased per acre yield by 1000 pounds
(2.21 ton/ac) and the full rate produced 1600 pounds (2.52 ton/
ac) over the untreated trees (1.72 ton/ac).
A vigorous letter campaign orchestrated by UC Cooperative Extension to the federal and state EPA agencies accelerated
ReTain registration for 2006. Since then, numerous demonstration and replicated trials have been conducted in Kings, Tulare,
Stanislaus, San Joaquin, Sutter and Yolo counties by UC farm
advisors. In addition to ground application, six aerial treatment
trials have been conducted by Bob Beede, Joe Grant and Kathy
Anderson. Application timing has been at approximately 30%
female bloom. Results from aerial treatment have been mixed.
Yield improvements equal to ground treatment were recorded
in 2006, when applications were made in between rain events,
and humidity was high. In 2007, aerial treatments performed
under drier conditions were generally not as effective. Valent
BioSciences representatives theorize that the drier conditions
in 2007 may not have provided sufficient absorption time for
ReTain, especially when air applications are performed at only
20 gal/ac. In 2006, both the air and ground treatments in Tulare
County increased yield by 1550 lb/ac over the untreated trees.
The 2006 aerial trial in San Joaquin County resulted in 1.11
ton/ac by ground, 1.6 ton/ac by air, and only 0.624 ton/ac from
the untreated trees.
In addition to Serr, replicated trials have also been performed in Kings County on other important cultivars. Two
replicated trials on Chandler have resulted in little yield
improvement. One Chandler orchard had Franquette pollenizers adjacent to the trial, and the other had no pollenizers.
Trials have also been performed in high yielding Tulare walnut
orchards. In 2006, two non-replicated demonstration trials
showed yield improvements of 667 and 1000 lb/ac. However, in
2007, a replicated trial performed in the more responsive Tulare
orchard resulted in only 432 lb/ac more walnuts from ReTain
treatment. The low response correlated with there being no difference in percent set between the treated and untreated plots.
The degree of PFA present in this orchard depends upon how
well the Serr orchard directly upwind overlaps with the Tulare
female bloom.
Previous research by Dr. Polito and UC farm advisors
demonstrated the significant yield benefits of reducing pollen
within Serr orchards by removing pollenizers and/or shaking
catkins when they initiate elongation. However, the limitations
of this approach include tree removal, which may not be fully
compensated for by expansion of the remaining trees, access to
a shaker at the proper time, the possibility of needing multiple
shakes to adequately reduce the pollen density, the inability to
access wet orchard floors, and the inability to mitigate migratory pollen from adjacent orchards owned by others. In 2007, a
test was performed in Kings County to compare catkin removal
against ReTain application. The results suggest that ReTain
improves yield as well as catkin shaking four times, which
virtually eliminated all but a few catkins per tree. Combining catkin shaking with ReTain treatment did not provide any
Key walnut producing countries
continued from page 7
greater yield improvement. ReTain application alone provided
a 20 pound per tree increase in dry yield over the untreated and
unshaken controls. This would calculate to be 1000 lb/ac in the
test orchard.
Tests were also conducted in Kings County to determine
the effect of adding copper to ReTain efficacy. Combining copper and ReTain reduced fruit set by 20% compared to ReTain
alone. If copper was applied prior to ReTain treatment, one
should wait at least two and preferably three days before ReTain
application. Copper appeared to have no affect on ReTain performance when ReTain was applied one or three days ahead of
the copper treatment.
In summary, what can we now tell growers about the use of
ReTain to manage PFA?
First, we know that PFA is the result of too much pollen
landing on the receptors of female walnut flowers. We also
know that this excess pollen triggers a peak in ethylene production which “burns the flower up” from rapid aging. ReTain is a
plant growth regulator (PGR) which is proven to block a precursor to ethylene production, thus preventing the occurrence
of PFA on flowers treated before they are exposed to excessive
pollen! Statewide research by farm advisors shows that the economic value of ReTain application is entirely dependent upon
the number of flowers protected from PFA, the level of PFA
within the orchard, and the percentage of the orchard affected
by PFA! Receiving benefit from ReTain is purely a numbers
game! Every researcher having studied walnut pollination and
continued on next page
market for snacking walnuts has increased
significantly over the past few years.
• India: India’s walnut production for
• France: Preliminary estimates are
2007 at 40,000 tons is slightly higher than
that French production declined signifilast year’s crop of 36,000 tons. Produccantly from 45,000 tons in 2006 to 28,600 tion was supported by favorable growing
tons in 2007. The primary producing
conditions. Rains in February/March 2007
regions (Grenoble in the east and Perigprovided optimum moisture for trees prior
ord in the west) were negatively affected
to the bloom period, and monsoon rains
by conditions that included a mild winter added additional moisture during nut
and lack of water in 2007. Consequently,
development.
French imports were projected to increase Walnuts are largely grown in Jammu
and exports to decline in 2007/08.
and Kashmir under rainfed conditions in
France remains a net exporter of
rocky terrain, while a relatively smaller
walnuts, shipping primarily inshell walnuts production comes from Himachal Pradesh
to the fast-growing markets in Spain and
and Uttarakhand. Walnut acreage has been
Germany. Both French and U.S. walnuts
stagnant for several years due to continued
compete for these markets. The majority
civil strife in the Kashmir valley.
of French imports are shelled walnuts,
Walnut consumption in 2007/08 is
primarily from Moldova, India and China. forecast to be 21,000 tons, nearly same
Approximately 7000 tons of shelled
as last year. Better consumer packaging
walnuts are purchased annually by French (vacuum packs that improve shelf life
households principally from supermarket and quality) has encouraged middle class
chains as a cooking ingredient more
consumers to eat walnuts as a year-round
than as a snacking product. However, the
snack. Walnuts were typically priced below
other competing nuts, but the vacuumpacked walnut kernels are receiving
higher prices, thereby improving the price
realization for processors.
• Turkey: Walnut production at 99,000
tons for 2007 has been increasing gradually due to increased demand, higher prices
and improved varieties.
Walnut consumption has increased
significantly in recent years. Per capita
consumption, which was estimated earlier
at 2.2 pounds, is now estimated to be 3.3
pounds, because of health reasons and
availability of imported walnuts. The low
exchange rate of the U.S. dollar against the
Turkish lira has also contributed to larger
imports. Although importers pay a 43.2%
duty on the value for inshell walnuts
and 58.5% duty on processed walnuts,
California exported 3000 tons of inshell
walnuts in 2006/07 and has exceeded 4500
tons shipped in the 2007/08 marketing
year through January 2008.
Source: USDA/Foreign Agriculture Service
GROWER NEWS
11
ReTain application timing—30% peak female bloom
45o
too early
not receptive
peak pollen receptivity
late
not receptive
Managing PFA in walnut
continued from previous page
number, which is the critical component for high yields!
Do we now know everything about ReTain and reducing
PFA? By no means! Northern California growers report little
PFA will tell you that it varies within the orchard and between
benefit from ReTain use. This is of great concern to the farm
years. They will also tell you that PFA is highly dependent upon advisors wishing to make this technology an effective tool for evthe blooming habit of Serr and the surrounding varieties for any eryone. Discovering the cause for poor performance in the north
given year. An excellent example is 2007, in which the Serr cat- will require careful observation of bloom conditions, tagging of
kins emerged well ahead of the female peak bloom, thus making treated and untreated flowers for set assessment, experimentalast year low in PFA and generally high in Serr yield regardless
tion with application timing relative to copper, and individual
of whether you used ReTain or not.
tree harvest to determine if there are additional factors affecting
Finally, the use of ReTain or any other method used to
the performance of this PGR. In the meantime, ReTain seems
reduce the effects of excessive pollen is not a cure-all for poor
to have rejuvenated the Serr variety in the southern walnut
orchard performance associated with poor water management,
districts to the point that growers are talking about planting
nematodes, low fertility, or tree canopies compromised by exces- new orchards, especially when the grade sheets show up to
sive shading or sustained stress. These factors all reduce flower
59% edible yield!
UC guidelines for ReTain® application
1. ReTain® prevents
walnut flowers from falling off due to excessive
pollen. It is NOT a general
enhancer of fruit set.
2. For maximum effect,
apply 50 grams active ingredient per acre
(one, 333 gram bag of
product) in 100 gallons
of spray solution. Spray
concentrations less than
66 ppm (one-half bag in
100 gallons of water, or
one bag in 200 gallons)
have been shown less effective, especially under
high PFA conditions.
3. Application should be
timed at an estimated
30% bloom, or when it
12
GROWER NEWS
the maximum number of
flowers are present in the
early stage of receptivity
(see photo above).
4. Coverage is critical!
ReTain does NOT translocate. It must contact the
flower to be effective.
5. Applications made
under conditions of higher humidity, such as prior
to dawn, may enhance
product performance
due to extended absorption time.
6. Ground applications
should be made with
speed sprayers calibrated
with 66% of the spray
volume in the upper half
of the manifold. Travel no
faster than 2 mph! Research shows 100 gallons
of spray solution per acre
is sufficient to provide
good coverage, providing the proper application speed is observed.
7. Aerial application
should only be considered when ground treatment is not possible. For
optimal coverage, apply
one-half bag of ReTain
in 20 gal/ac, and fly in
the direction of the tree
rows. Then repeat the
same application rate,
but fly perpendicular to
the tree rows to minimize
the shadow effect. In research trials, aerial treat-
ment performance has
been variable, and may
be adversely affected
by dry conditions during
application. This causes
insufficient absorption
time necessary for activity.
8. Do not tank mix ReTain with copper-based
fungicides, due to their
adverse effect on ReTain
performance. If possible,
apply ReTain at least
one day prior to copper
treatment. Delay ReTain
treatments for three days
following copper application.
9. Read and follow label
instructions.
2007 crop set review:
What happened?
A
fter the harvest of 2006,
tonnage expectations
for the 2007 crop were
high, with a potential range from
360,000–370,000 tons based on
the estimated bearing acres. But it
soon became very evident during
bloom that this was not to be the
case. In most regions, the bloom
on each tree was quite staggered
with the lower scaffolds leafing out
first, followed by the top of the tree
and finally by the center portion.
This staggered leafing pattern led
many growers to wonder if the
last flowers to emerge would even
produce viable nuts. In addition to
this variable leafing pattern, some
varieties like Chandler produced
an extremely heavy catkin bloom, potentially leading to crop reductions due to
PFA (pistillate flower abortion).
Many theories were formulated
regarding why the bloom and subsequent
crop set occurred in this manner. The
main contributors were believed to be a
lack of adequate net chilling units from
the winter of 2006/07 and the impact
of the extreme heat wave during the
summer of 2006 that affected the bud
differentiation stage of certain varieties.
Chilling unit accumulations based
on the standard model that records the
total number of hours below 45 degrees
F, initially indicated that there should
have been adequate accumulations during the winter of 2006/07 to produce a
consistent bloom. However, the Utah
model, which takes into consideration the negative effects of daytime high temperatures in excess
of 60 degrees on the accumulated
units below 45 degrees, indicated
that the winter weather preceding the 2007 crop bloom was the
warmest experienced in recent
years in all growing regions (see
table below for current and historical accumulations). Nut trees,
as well as stone and pome fruit
trees, require an accumulation of
winter chilling units for flowers
and buds to develop and emerge
normally on an annual basis. A
lack of chilling units causes the
tree to exhibit a staggered or
delayed bloom, which can result
in a reduction of overall nut set and final
inshell sizing. Walnuts, according to the
University of California, require 500–700
cumulative units, but many growers and
industry observers feel that at least 1000
units are required.
As demonstrated in 2007, the interaction of above average daytime high
continued on page 15
Chilling unit model comparison through March 1
Model
Butte Co.
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
Hours
< 45
1,192 1,197 885 1,042 911 847 798 Utah
1,282
862
1,186
1,602
1,782
1,524
1,345
Model
Model
Hours
San Joaquin Co. < 45
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
1,075 1,111 834 911 730 797 785 Utah
Tulare Co.
Hours
< 45
Utah
1,057
762
1,055
1,552
1,576
1,437
1,304
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
1,144 1,325 1,030 1,092 1,069 1,012 1,227 872
795
1,169
1,537
1,622
1,483
1,328
GROWER NEWS
13
Walnut blight control
By Richard Buchner, UCCE Farm Advisor, Tehama Counties
Jim Adaskaveg, Plant Pathology Professor, UC Riverside
Steve Lindow, Plant Pathology Professor, UC Berkeley
D
epending upon
weather conditions, pathogen
population size and walnut variety, walnut blight
caused by the bacterium
Xanthomonas campestris
can cause significant crop
loss. During the 2007 season in Tehama County,
untreated trees under
simulated plus natural
rainfall had 32% blighted
walnuts in the mid-canopy and almost 70% damage on walnuts reachable
from the ground.
Research funded by
the California Walnut
Board has resulted in a
good understanding of
the disease and how to
protect walnuts from
infection. Walnut blight
bacteria over-winter on
dormant buds primarily under the outer bud
scales or cataphylls. Bud
population evaluations
have shown that the inner
buds where the immature
walnut flowers are located
are relatively free of bacteria. When buds break
in the spring, cataphylls
open and young shoots
extend past them. During
favorable weather conditions, blight bacteria are
splashed onto and can
infect any green tissue.
Early infections usually
occur at the flower end of
developing walnuts. Once
14
GROWER NEWS
Examples of walnut shoots at or close to prayer stage.
Walnut blight disease progress curve
Tehama County, 2007
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
4/27
5/3
5/7
5/10
5/14
5/17
5/21
5/29
% blighted nuts
Blight incidence (percent infected walnuts) over time on untreated Chandler
walnuts in Tehama County under environmental conditions with natural and
simulated rainfall. Disease symptoms first occurred after April 27 and increase
until May 21.
This graph represents a disease progress curve over the spring season and demonstrates the disease potential under very favorable conditions for walnut blight.
inside the walnut, bacteria
grow toward the center of
the nut, destroying the developing kernel resulting
in nut abortion. So-called
“end blight” occurs early
in the season compared
to later infections that are
randomly distributed over
the hull and are referred to
as “side blight.” Side blight
may or may not result in
kernel damage depending upon when infection
occurs. Successful blight
control relies upon decreasing bacterial populations and preventing new
infections.
We have tested almost all of the available
spray materials and mix
combinations and found
that copper mixed with
Manex® is currently the
most effective spray
choice. Tests have repeatedly shown that any goodquality copper product
mixed at the label rate
with Manex will provide
good protection. Pest
Control Advisors (PCA)
can help select which copper product to use. The section 18 registration for Manex has been
approved for the 2008 season for listed counties and
a PCA recommendation
is required for Manex use.
We continue to seek full
registration of Manex and
other ethylene bis-dithio-
carbamates (EBDCs) such as Manzate
for the coming seasons. Additionally,
we are evaluating new bacteriacides
that could potentially be used in future
rotation programs with copper/EBDC
bactericides to avoid the overuse of any
one single material.
Once the material and rate have
been selected, spray timing and coverage are the remaining two elements in a
successful walnut blight control program. Timing the first spray when 40%
of the buds are at the “prayer” stage has
the greatest effect on reducing bacteria
populations and protecting walnuts. A good-quality adjuvant will wet
cataphylls and encourage the copper/
Manex mix to penetrate between bud
scales and kill overwintering bacteria.
Following the first application, decisions are made based upon weather
conditions and damage history. Warm,
wet (rainfall or leaf wetness from dew)
weather favors disease epidemics and
severe damage compared to relatively
low infection risk if weather is dry.
Under severe walnut blight pressure, a
second application 7–10 days following
the first spray will protect any remaining shoots that have emerged following
the first application. Additional spray
applications are based upon the weather
and the risk of infection. A disease prediction model, XanthoCast, developed
by Jim Adaskaveg at UC Riverside is
available in some areas. If XanthoCast is
not an option, watch weather forecasts
and treat before rainfall. Blight treatments work by protecting walnuts from
infection and will not control the disease
if applied after infection has already occurred.
Copper/Manex treatments result in a
protective barrier on the tissue surface. If coverage is poor or bacteria are
exposed to a sub-lethal dose, sprays will
not work well. In addition, spray failures
increase the risk of developing copper/
Manex resistant bacteria.
Additional walnut blight information
is available at http://walnut.research.
ucdavis.edu
2007 crop set review
continued from page 13
temperatures and night-time lows, as
calculated by the Utah model, may provide the best indicator of tracking actual
accumulated chilling units and may be
one possible cause of the decreased crop
set. On a positive note, the 2007/08 winter has appeared to have given us ample
net chilling units that should result in
trees breaking dormancy uniformly in
most growing areas.
The other possible contributor to the
smaller 2007 crop was likely the high
summer temperatures experienced in
June 2006 and again in mid-July 2006,
which may have had a pronounced
physiological effect on some varieties.
The high intensity and extreme duration
of the heat, particularly in the central
region of the state, occurred at a critical
time during the growing cycle when the
buds for the next year’s crop were differentiating and developing. While the heat
had immediate noticeable impact on the
edible yield of the 2006 crop, the total
effect was not fully realized during that
growing season. The carryover effects on
the 2007 crop were finally realized as the
nuts were being set this past spring. Two
varieties that seemed to be particularly
affected were Chandler and Tulare, which
showed significant decreases in nut set
and production in 2007.
The 2007 growing season conditions
proved to be significantly different and
quite mild when compared to the prior
year. Only on a few occasions did temperatures exceed 100 degrees for more
than two or three days at a time and the
maximum day-time highs were significantly less. More importantly, the timing
of heat events in relation to the development of the crop and buds was drastically different during this past season.
The most significant heat wave of 2007
occurred very late in the growing season
(end of August) as opposed to 2006 (see
table below). Because most kernels were
fully formed, this heat event seemed to
have had minimal effect on the overall
quality, but it did slow the start of harvest
by a few days.
The combination of adequate chilling and a mild growing season have
potentially set the stage for a significant
rebound in production in 2008.
Days over 100 degrees
Butte Co.
2007
2006
June
0
6
July
6
15
Aug
8
1
Sep
2
0
Total
16
22
San Joaquin Co.
2007
2006
June
3
9
July
4
14
Aug
9
2
Sep
3
1
Total
19
26
Tulare Co.
2007
2006
June
2
7
July
7
17
Aug
8
1
Sep
3
1
Total
20
26
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GROWER NEWS
15
Diamond Foods, Inc.
1050 S. Diamond St.
Stockton, CA 95205
L E GI SLAT I V E
UPD AT E
2007 Farm Bill still at an impasse
A
s of the first week of March, the members of the House
and Senate were still not close to agreeing to a final
budget for the farm bill or how it would be funded. In
the absence of enactment of a new farm bill or an extension
of the 2002 farm bill beyond March 15, the provisions of the
Agricultural Adjustment Act of 1938 and the Agricultural Act
of 1949, which have been repeatedly suspended by subsequent
farm bills, would again become legally effective.
Congress historically has amended the farm bill every five
years, which provides money for federal nutrition programs
and subsidies for farmers and ranchers. The 2002 bill expires
March 15, 2008, which is why a bill still pending in 2008 is
labeled the 2007 Farm Bill.
The House and Senate have passed a farm bill in their
respective chambers and are negotiating terms before sending the final bill to the president. If the bill doesn’t pass by the
deadline, permanent law goes into effect.
The Senate bill included approximately $2.2 billion in
mandatory funding over five years for specialty crops verses
the House bill that included approximately $1.6 billion over
five years for specialty crops.
President Bush has threatened to veto the current farm bill
unless there are modifications to remove new taxes and lower
farm program payment caps. The Bush administration agreed
to a budget proposal for the farm bill that includes $6 billion
in additional “over-baseline” spending over 10 years.
Accessing the
grower web
or Grower Accounting at 1-800-692-3400,
ext. 217 or 218, for assistance.
Login Name:
The Diamond website was designed to
enable our growers online access to current and prior years’ receiving, grading
and delivery reports. Access is quick and
easy:
1.
2.
3.
4.
In your web browser, enter
www.diamondfoods.com
Click on Diamond Growers
Next, click on Grower Resources
Next, click on Diamond Online
© 2008 Diamond Foods, Inc.
Password:
6. Click Login to access your information
Login
(save this in your “favorites” for
future access)
5. Enter your assigned login name and password
Note: If you do not have your login, please
call Grower Services at 1-800-355-3346
7. After you log in, you will see your
specific grower page. Use the menu on
the left to select, view and print reports,
change your password or view your contact information.
Published by Diamond Foods, Inc., 1050 S. Diamond St., Stockton, CA 95205 • 209-467-6000 • diamondfoods.com
Articles appearing in this publication may not be reprinted without permission. Please address any comments or
suggestions to Sam Keiper, Vice President of Corporate Affairs, at the address above.